Executive Summary
carsales.com Ltd engages operates digital automotive marketplace in Australia, South Korea, Brazil, Mexico, Chile, and Argentina. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Share Price & News
How has carsales.com's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
CAR
0.008%
AU Interactive Media and Services
-0.3%
AU Market
1 Year Return
35.1%
CAR
6.3%
AU Interactive Media and Services
-11.1%
AU Market
Return vs Industry: CAR exceeded the Australian Interactive Media and Services industry which returned 9.1% over the past year.
Return vs Market: CAR exceeded the Australian Market which returned -10.6% over the past year.
Shareholder returns
| CAR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 0.008% | -0.3% |
| 30 Day | -1.2% | -3.6% | -4.2% |
| 90 Day | 19.7% | 6.3% | 1.6% |
| 1 Year | 39.1%35.1% | 7.6%6.3% | -7.8%-11.1% |
| 3 Year | 76.8%61.3% | 55.9%48.1% | 17.1%2.1% |
| 5 Year | 143.3%108.1% | 131.3%110.0% | 43.1%13.0% |
Price Volatility Vs. Market
How volatile is carsales.com's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Here's Why We're Wary Of Buying carsales.com's (ASX:CAR) For Its Upcoming Dividend2 weeks ago | Simply Wall St
How Much Are carsales.com Ltd (ASX:CAR) Insiders Taking Off The Table?3 weeks ago | Simply Wall St
Did You Participate In Any Of carsales.com's (ASX:CAR) Fantastic 152% Return ?Valuation
Is carsales.com undervalued compared to its fair value and its price relative to the market?
42.45x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CAR (A$20.71) is trading above our estimate of fair value (A$16.11)
Significantly Below Fair Value: CAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CAR is poor value based on its PE Ratio (42.4x) compared to the XX Interactive Media and Services industry average (36.1x).
PE vs Market: CAR is poor value based on its PE Ratio (42.4x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: CAR is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: CAR is overvalued based on its PB Ratio (17.2x) compared to the AU Interactive Media and Services industry average (7.9x).
Next Steps
Future Growth
How is carsales.com forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
14.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAR's forecast earnings growth (14% per year) is above the savings rate (2.3%).
Earnings vs Market: CAR's earnings (14% per year) are forecast to grow slower than the Australian market (18.3% per year).
High Growth Earnings: CAR's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAR's revenue (9.8% per year) is forecast to grow faster than the Australian market (4.4% per year).
High Growth Revenue: CAR's revenue (9.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CAR's Return on Equity is forecast to be very high in 3 years time (48.7%).
Next Steps
Past Performance
How has carsales.com performed over the past 5 years?
8.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAR has high quality earnings.
Growing Profit Margin: CAR's current net profit margins (30.2%) are lower than last year (31.6%).
Past Earnings Growth Analysis
Earnings Trend: CAR's earnings have grown by 8.7% per year over the past 5 years.
Accelerating Growth: CAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CAR had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-0.8%).
Return on Equity
High ROE: Whilst CAR's Return on Equity (40.99%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is carsales.com's financial position?
Financial Position Analysis
Short Term Liabilities: CAR's short term assets (A$234.3M) exceed its short term liabilities (A$72.5M).
Long Term Liabilities: CAR's short term assets (A$234.3M) do not cover its long term liabilities (A$629.5M).
Debt to Equity History and Analysis
Debt Level: CAR's debt to equity ratio (187.9%) is considered high.
Reducing Debt: CAR's debt to equity ratio has increased from 93.6% to 187.9% over the past 5 years.
Debt Coverage: CAR's debt is well covered by operating cash flow (31.6%).
Interest Coverage: CAR's interest payments on its debt are well covered by EBIT (11.6x coverage).
Balance Sheet
Next Steps
Dividend
What is carsales.com current dividend yield, its reliability and sustainability?
2.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CAR's dividend (2.27%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).
High Dividend: CAR's dividend (2.27%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).
Stability and Growth of Payments
Stable Dividend: CAR's dividends per share have been stable in the past 10 years.
Growing Dividend: CAR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.3%), CAR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CAR's dividends in 3 years are forecast to be covered by earnings (80.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Cameron McIntyre (49 yo)
3.67yrs
Tenure
AU$2,327,461
Compensation
Mr. Cameron McIntyre has been the Chief Executive Officer and Managing Director of carsales.com Ltd since March 17, 2017. Mr. McIntyre served as the Chief Operating Officer of carsales.com Ltd from October ...
CEO Compensation Analysis
Compensation vs Market: Cameron's total compensation ($USD1.64M) is about average for companies of similar size in the Australian market ($USD2.20M).
Compensation vs Earnings: Cameron's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.67yrs | AU$2.33m | 0.11% A$ 5.7m | |
| Co-Founder & Non Executive Director | 24.25yrs | AU$147.25k | 3.37% A$ 171.6m | |
| Chief Financial Officer | 0.92yr | AU$358.06k | no data | |
| Managing Director of Australia | 3.5yrs | AU$1.25m | 0.00046% A$ 23.4k | |
| Managing Director of International | 3.5yrs | AU$855.89k | 0.017% A$ 841.5k | |
| Chief Information Officer | 3.5yrs | no data | no data | |
| General Counsel & Company Secretary | 5.92yrs | no data | no data | |
| Communications & PR Manager | no data | no data | no data | |
| Chief Marketing Officer | 3.5yrs | no data | no data | |
| Chief People Officer | 2.75yrs | no data | no data | |
| Chief Executive Officer of Encar.com | no data | no data | no data | |
| Director of Content | no data | AU$192.98k | no data |
3.5yrs
Average Tenure
Experienced Management: CAR's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.67yrs | AU$2.33m | 0.11% A$ 5.7m | |
| Co-Founder & Non Executive Director | 24.25yrs | AU$147.25k | 3.37% A$ 171.6m | |
| Independent Chairman | 1.67yrs | AU$323.37k | 0.0095% A$ 482.1k | |
| Independent Non-Executive Director | 10.25yrs | AU$180.50k | 0.0063% A$ 321.6k | |
| Alternate Non-Executive Director | 14.92yrs | no data | 1.13% A$ 57.5m | |
| Non-Executive Director | 4.42yrs | AU$194.75k | 0.011% A$ 554.0k | |
| Non-Executive Director | 1.33yrs | AU$180.50k | 0.0017% A$ 85.1k | |
| Non-Executive Director | 2.17yrs | AU$161.50k | 0.0052% A$ 265.0k |
4.0yrs
Average Tenure
58.5yo
Average Age
Experienced Board: CAR's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
carsales.com Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: carsales.com Ltd
- Ticker: CAR
- Exchange: ASX
- Founded: 1997
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: AU$5.097b
- Shares outstanding: 246.09m
- Website: https://www.carsales.com.au
Number of Employees
Location
- carsales.com Ltd
- 449 Punt Road
- Level 4
- Melbourne
- Victoria
- 3121
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Sep 2009 |
| WN6 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Sep 2009 |
| CAR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Sep 2009 |
| CSSS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Sep 2009 |
| CSXX.Y | OTCPK (Pink Sheets LLC) | UNSPONSOD ADR | US | USD | Feb 2012 |
Biography
carsales.com Ltd engages operates digital automotive marketplace in Australia, South Korea, Brazil, Mexico, Chile, and Argentina. It operates in Online Advertising Services; Data, Research and Services; La ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/24 19:03 |
| End of Day Share Price | 2020/09/24 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.